Airbnb’s Market Challenges and Competitive Pressures Justify Hold Rating

BTIG analyst Jake Fuller has maintained their neutral stance on ABNB stock, giving a Hold rating on May 19.

Jake Fuller has given his Hold rating due to a combination of factors affecting Airbnb’s current market position. One of the primary reasons is the observed moderation in site traffic trends for Airbnb, which contrasts with the improving trends seen in its competitors like Booking and Expedia. This decline in site traffic has been a reliable indicator of room night growth, suggesting only modest growth for Airbnb compared to its peers.
Additionally, the competitive landscape in the activities space is intensifying, with Airbnb’s Experiences relaunch facing stiff competition from Booking’s expanded offerings. Booking’s broader market reach and more extensive customer base present challenges for Airbnb’s more niche product. Furthermore, the valuation range for Airbnb reflects a fair value that doesn’t significantly exceed current levels, supporting a Hold rating rather than a more aggressive Buy recommendation.

Fuller covers the Consumer Cyclical sector, focusing on stocks such as Booking Holdings, Airbnb, and Expedia. According to TipRanks, Fuller has an average return of 5.8% and a 51.27% success rate on recommended stocks.

In another report released on May 19, Bank of America Securities also maintained a Hold rating on the stock with a $146.00 price target.